1998 SESSION

HB 1062 Personal Property Tax Relief Act of 1998; created.

SUMMARY:

Personal Property Tax Relief Act of 1998. Requires the Commonwealth to
pay, directly to taxpayers for tax year 1998 and to localities for tax years
1999 and thereafter, a percentage of the reimbursable amount of any passenger
car, motorcycle, and pickup or panel truck that is owned or leased by a natural
person and used for non-business purposes. The reimbursable amount is the
value of the qualifying vehicle multiplied by the locality's effective tax rate
on January 1, 1997. The percentage of the reimbursable amount is 15 percent in
tax year 1998; 30 percent in tax year 1999; 50 percent in tax year 2000; 70
percent in tax year 2001; and 100 percent in tax years 2002 and thereafter.
The percentages will not increase as scheduled if anticipated general fund
revenues decline as compared to general fund revenues appropriated for the
fiscal year. The Department of Motor Vehicles will promulgate guidelines on or
before July 1, 1998, and update them triennially thereafter, for use by
localities. Personal property tax bills for tax year 1999 and thereafter will
state the amount that the Commonwealth will reimburse to the locality, and
taxpayers will receive a deduction for this amount.